One Theory Behind the Success of Branding as a Marketing

question 2

Multiple Choice

One theory behind the success of branding as a marketing strategy is that customers are willing to pay more for a branded item. This concept, then, should have the most direct influence on which of the following financial objectives?

• A) increase the number of customers using the cafeteria
• B) increase the average check
• C) improve customer satisfaction
• D) generate residual traffic

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Definitions:

Internalizing External Costs

The process of ensuring that the prices of goods and services fully reflect all the costs and benefits, including those impacts on the environment and human health that are not accounted for in the market price.

Environmental Degradation

The deterioration of the environment through depletion of resources such as air, water, and soil; the destruction of ecosystems; and the extinction of wildlife.

Market Price

The current value at which a commodity, security, or service can be bought or sold in a marketplace.

Economic Growth

An increase in the economic output and wealth of a country, typically measured by the gross domestic product (GDP).